Offshore bank accounts are supposed to safeguard your income from any undue tax payments and unnecessary payments that could take a chunk of your. When you take part in offshore banking, you do so with a financial institution outside your home country. In order to open an account with an offshore bank, you will need to provide proof of your identity and other documents to prove your identity. Banks may also require information on the source of your deposits. Opening an offshore bank account is just like opening a bank account locally. The only difference is the location of the bank, as well as the banking services.